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So I have this take home test that I'm doing for my introduction to economics class. My teacher said that we were not allowed to ask anybody in the class for answers but she didn't say anything about the internet.
I'm really just stuck on question 1 of the free response.
Question:
1. Assume that a country's economy is operating at less than full employment.
a) Draw a correctly labeled graph of aggregate demand and aggregate supply, and show each of the following.
i) long-run aggregate supply curve
(ii0 Current output and price level
b) Assume that policy makers take no policy action and that prices and wages are flexible. Explain what will happen to each of the following.
i) short-run aggregate supply
ii) Employment
C) Now assume that instead of taking no policy action, the government implements a special tax incentive to encourage individuals to increase saving for retirement. Draw a correctly labeled graph of the loanable funds market. Show how the real interest rate is affected.
D) Given your answer to part (c) explain how aggregate is affected in the long run.
Now that's a doosy of a question right? Normally I wouldn't post a topic like this on TL but I've seen quite a few topics like this all with excellent responses which makes me feel that Teamliquid is filled with giddy nerds ready to spring in to action at a moments notice. Also macroeconomics is a bitch and I hate it T_T.
 
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Baa?21243 Posts
Do your own tests. Seriously.
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Yeah I'm sure your teacher wants you to ask for help on the internet to answer test questions.
Figure it out yourself you lazy piece of shit, there is a reason you were assigned those questions. I hope you are a freshman, if you rely on help from others you will suck at college. Use the resources available to you that won't give you the answer directly.
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What these other guys have said, its not that hard
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On January 23 2009 13:10 Carnivorous Sheep wrote:
Do your own tests. Seriously.
and read the text book and PAY ATTENTION
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On January 23 2009 13:14 Scaramanga wrote:
What these other guys have said, its not that hard
Yeah, I've done most of the problem on my own; I guess I should be more specific. I only need help on section B. I forgot what happens without Monetary policy.
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its a take home test for a reason....you can just look up the answer
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ill answer A cause thats the only one i can answer on the top of my head
a) Draw a correctly labeled graph of aggregate demand and aggregate supply, and show each of the following.
Draw your standard Supply and demand graph. On the X axis label it just "Y" and on the Y axis label it "CPI". Draw a second demand curve to the right of the first one. Next draw arrows that start at the beginning of the Supply curve until you hit the intersection of the first demand curve. The LINE should look something like this ->->-> but ofc not in that position, should be (diagnoly). Draw a line from the middle of this short segment to the first Demand curve and label it Depression. your done
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That looks pretty similar to a test that I gave...
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I don't mind helping with homework but tests....
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On January 23 2009 13:48 HelloSir wrote:
That looks pretty similar to a test that I gave...
It also looks similar to a test we just took in class a few weeks back.. Is this AP Macro?
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Ya I probably shouldn't have made this topic; In that time I found a solution to part I was stuck on. I guess this thread can still have value if anybody feels like they want to do the problem just for fun. :/
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1. Assume that a country's economy is operating at less than full employment.
a) Draw a correctly labeled graph of aggregate demand and aggregate supply, and show each of the following.
i) long-run aggregate supply curve
It's like a bell curve, centered at the price-equilibrium point
(ii0 Current output and price level
The midpoint of the segment connecting the peak and the lowest point, because that's the average value of the price-inflation index trend
b) Assume that policy makers take no policy action and that prices and wages are flexible. Explain what will happen to each of the following.
i) short-run aggregate supply
ii) Employment
It depends on the National Innovation Index (NII). The higher the NII is, the lower the unemployment. You calculate the National Innovation Index using the method outlined above.
C) Now assume that instead of taking no policy action, the government implements a special tax incentive to encourage individuals to increase saving for retirement. Draw a correctly labeled graph of the loanable funds market. Show how the real interest rate is affected.
Not sure, sorry
D) Given your answer to part (c) explain how aggregate is affected in the long run.
Well, if you don't know the answer to c...
Hope this helps
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Baa?21243 Posts
On January 23 2009 14:11 revoluti0nX wrote:
i) long-run aggregate supply curve
It's like a bell curve, centered at the price-equilibrium point
(ii0 Current output and price level
The midpoint of the segment connecting the peak and the lowest point, because that's the average value of the price-inflation index trend
That's, definitely wrong. Not even close o_O
i) short-run aggregate supply
ii) Employment
It depends on the National Innovation Index (NII). The higher the NII is, the lower the unemployment. You calculate the National Innovation Index using the method outlined above.
There's more to it than the NII.
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On January 23 2009 14:44 Carnivorous Sheep wrote:Show nested quote +On January 23 2009 14:11 revoluti0nX wrote:
i) long-run aggregate supply curve
It's like a bell curve, centered at the price-equilibrium point
(ii0 Current output and price level
The midpoint of the segment connecting the peak and the lowest point, because that's the average value of the price-inflation index trend
That's, definitely wrong. Not even close o_O
i) short-run aggregate supply
ii) Employment
It depends on the National Innovation Index (NII). The higher the NII is, the lower the unemployment. You calculate the National Innovation Index using the method outlined above.
There's more to it than the NII.
LOLDUMB
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EPT
